Quite why Mark Carney and his fellow criminals (they are stealing from savers!) have decided to reduce interest rates is a mystery to me. So IF, and it is a big if, the banks and building societies actually pass on this cut to borrowers it will save the average UK mortgage borrower just £22 a month. This isn’t going to stimulate demand or increase consumer spending. All it means is banks can borrow at ridiculously low interest rates and make even more money.

You can bet the 0.25% will be immediately shaved off the already low interest rates paid to savers, assuming they are paying more than 0.25% interest.

There must be a lot of people in the UK who paid mortgage interest rates as high as 17%. Yes 17%! Like now, many could not afford to buy a home, not due to high house prices, but because paying a mortgage then took 60-70% of their take home pay. Imagine that struggle. Many of these people nevertheless struggled on, bought a house, went without holidays, new cars etc and managed, even squirreling away some modest savings to tide them over unforeseen emergencies. What did they get? A ludicrous monetary return for their their prudence.

Cutting interest rate to 0.25% isn't going to make any difference to industry either. A business plan not viable at 0.5% will not suddenly be worthwhile now. It is lack of demand for credit that is the trouble, not the cost. The only borrowers are sovereign governments! The recent 0.25% BoE interest rate cut will save the UK Treasury £1 billion a year in interest payments on the country's national debt.

With cheap money straight from the Bank of England, banks will not want ordinary savers’ money, so where might that go? Even with a 3% stamp duty surcharge, buy to let property will look attractive again, no doubt forcing up house prices further. So this pointless cut does nothing for businesses, savers or first-time buyers.

Does everyone remember the Remain claims that the pound would fall and mortgage cost would rise because interest rates would be need to be raised to protect the pound? Well the pound fell, but it fell even more after the interest rate was cut. It would have been a better idea to raise interest rates to show a degree of confidence after Brexit. Any current economic slowdown perceived or real, is a direct result of Remain's "Project Fear".

Not content with the 0.25% cut in the BoE interest rate, this economics of the madhouse gets even worse with clown Carney also announcing the likelihood (inevitability) of a further rate cut and that there will be more QE to the tune of £60bn. That'll help! The pound will fall even further, making imported goods even more expensive and lighting the touch-paper for inflation.

No wonder savers are concerned, no interest paid and a political devaluation of the real value of their savings!

Low interest rates are the main reason that so many company pension funds have such large deficits. So the consequences for pension funds will be huge. Most companies with final salary schemes are already struggling with ever-increasing deficits.

As long term interest rates decrease, the cost of providing pensions increases because schemes will not be earning less on the funds invested, resulting in more money being required to be invested top pay for future pension liabilities. So if they earn 1% a year on their assets a larger fund is required to earn the equivalent of 5% a year.

Around 11 million workers in the private sector belong to final-salary. Millions more in the public sector have pension schemes underwritten by the taxpayer. Low interest rates and QE lower bond yields and increase future pension liabilities, increasing deficits further.

At the current time, the total pension deficit in the UK is fast approaching £1trn that's £1,000,000,000,000.

Already pension annuities, purchased with a pension pot in return for a regular income, have fallen dramatically since 2008. Then, £100,000 pension pot would have bought an annuity paying an annual income of around £7,500. Today that same pot buys just £4,400 a year - around 20% less than two years ago.

If you thought the financial crisis of 2008 was bad, it will be nothing compared to the coming Armageddon, when pension schemes can no longer cope with today's pension liabilities let alone those in the future. But here's a thought, why not suspended dividend payments to all shareholders for a year. Last year, 35 of the FTSE 100 companies paid out more in dividends to shareholders than the size of their pension deficits (source AJ Bell)Remember, it has all been caused by corporate greed, government policy and economic meddling!

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